National Iranian Oil Company (NIOC) was formed after nationalization of the Iranian oil industry and is now one of the biggest oil producing companies worldwide. The NIOC's position is getting promoted in tandem with advancement of the oil industry knowledge and technology and as the economic and diplomatic relations get further complicated. The NIOC has on its agenda national and regional policies and cooperation with the important industrial states in energy supply and establishment of stability in the world oil markets.

National Iranian Oil Company has taken effective measures in line with Article 44 of the Constitution for establishment of economic foundations by delegating authority to different sectors, while having high-level supervision over the oil industry activities. Furthermore, by providing necessary financial resources and needed items, the NIOC has taken giant strides towards development and progress so as to update knowledge and technology in exploration, drilling and exploitation, relying on capacity of the Iranian experts and personnel.

The NIOC article of association was approved and communicated in June 2016 and certain points of it underwent changes. Since then, it has had stronger position in terms of sovereignty and de-monopolization. Compilation of new model of oil contracts and expansion of international engagements and the goals for implementation of projects and plans, using a varying basket of oil contracts (buy-back, IPC, EPCF and the like) served as the ground for the NIOC turning the subsidiary manufacturing companies into E&P companies in the future. It cares for further strengthening domestic potential, while paying more attention to the private sector. Among other fresh approaches of the NIOC is giving more share to the private sector in the NGL, LNG, etc. projecs.

The NIOC charter act comprises 84 articles and 31 notes. President Hassan Rouhani communicated the charter late May 2016. The Islamic Public of Iran had studied related bill since May 2014. It was approved by the 9th parliament in the final days of its performance. It marks one of the constructive measures of the 9th parliament in economy and production.

Production from joint fields is the top priority of the Ministry of Petroleum and the NIOC. During tenure of the Government of `Hope and Prudence' (current government), extraction from South Pars Joint Gas Field (common with Qatar) has increased by about 300 million cubic meters a day and Iran is getting to have its gas extraction from the field equal with that of Qatar. Also the capacity of oil production from West Karoon joint fields has increased dramatically. Now the capacity of production from the fields has reached more than 300,000 barrels per day.

Enhanced Oil Recovery from oil fields is no longer the priority of the NIOC and it is expected to compile new oil contracts, while benefiting from the new knowledge and technology that are used by international oil companies. It tries to transfer the knowledge and technology to the contract within framework of contracts, thus materializing the dream of EOR of the Iranian oil fields. Now the EOR of collection of the country's liquid hydrocarbon reserves is 28.5 and the EOR of crude oil in Iran is on the average 24.5 percent. The coefficient does not exceed five percent in certain fields.

There are 170 oil fields and 50 gas fields in Iran. Also, number of the oil and gas reserves in Iran stands at 358: Out of the total, 163 reserves are developed and 195 are non-developed.